SC Seeks Explanation on Increase in the Sales Tax on POL Products |

SC Seeks Explanation on Increase in the Sales Tax on POL Products

Supreme Court in action and asked for an explanation from concerned authorities. The government, as well as the relevant departments, have been issued notice by the court. In the notice, it is clearly mentioned to provide a detailed understanding of the reason behind increase in petroleum and oil lubricants (POL) products. It is sad to see that there has been a 1/4th increase in prices of POL products. Approximately, there have been 25% tax increase in the products. Surprisingly, crude oil prices have been reduced and decreased.

Recently, Additional Attorney General was addressed by Chief Justice of Pakistan asking for the reason behind increment in POL products prices. Therefore, what remains unknown is although the price of crude oil decreased internationally still in Pakistan the prices peaked. Additional Attorney General defended the increase in price by stating that prices in Pakistan are the lowest. Further adding that even petrol prices in  India are much higher in comparison to Pakistan. Chief Justice of Pakistan responded that the prices are not to be compared with India and a valid explanation is required.

According to Additional Attorney General, there are number of taxes which are being imposed on petrol.  The taxes include custom, petroleum and sales charges. Approximately, GST of 11.5pc is being imposed on petroleum and oil lubricants. Adding on, he even mentioned that the prices of petroleum products which are on crude oil are not set by the government.

It is important to mention that since few months, the prices of petroleum and oil lubricants are being increased constantly. The government has faced harsh criticism from the public yet no measures have been taken to revise the prices.

The prices of petroleum and oil lubricant prices have been increased up to PKR.3.5. Petrol now being priced at PKR.87.70, High-speed diesel at PKR.98.76, Lightspeed diesel at PKR.68.85 and Kerosene at PKR.79.87. The prices have been increased PKR.1.70, PKR.2.31, PKR.3.55 and PKR.3.41 respectively.